Cheap hotel rates: An insider's tips

I worked in the hotel industry for 10 years and enjoyed several company perks, including cheap hotel rates across the country. 

Even though I no longer qualify for an employee discount, I still refuse to pay the standard rate for a hotel room.  Here are five tips to get cheap hotel rates:

Ask friends or family:  Canadian hotels employ 284,000 workers and there’s a good chance you know one of them.  Hotels offer cheap rates for employees' friends and family, up to 50 per cent off, which are often valid across the entire chain.  If you someone in the industry, ask them to help book your room.

You may already get a preferred rate:  Most hotels offer preferred rates to government and corporate employees and they will often honour these rates for personal use.  You can also get a discount if you belong to a professional association or carry an auto-club membership.

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Off-peak saving: Most resorts and sports destinations  fill up on the weekends, and then empty out on Sunday/Monday.  Conversely, most big cities are busy with meetings and corporate travel from Tuesday to Thursday, especially the downtown hotels.  Save up to 50 per cent by traveling during off-peak times.

Book in advance – Hotels offer advanced booking discounts on their website.  The earlier you book, the more you save.  It sounds straightforward, but there is a catch.  The bigger the discount, the more conditions apply to your booking.  For example, a 14-day advanced purchase rate likely comes with a no-cancellation clause, and you’ll have to pay up-front, rather than at checkout.

Third party websites – Look at the rates offered on Expedia.ca or Travelocity.ca.  Hotels are required to offer rate parity to these third party websites, which means the lowest rate offered on the hotel website must also be offered on Expedia and Travelocity.

Hotels pay hefty fees (22 per cent) for reservations booked through Travelocity and Expedia. Use this to your advantage by finding the best deal online and then calling the hotel directly to ask for a discount.  Savvy hotel operators should know they will profit more by giving you a $10 to $15 discount over the phone than they will if you book on Travelocity or Expedia.

For example, when you book a room for $100 on Expedia – the hotel gets $78.  But if you call the hotel directly and ask for an $85 rate, you’ll save money and the hotel makes more.

What are some ways that you save money on hotel rooms?

Also Read:

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Robb Engen is half of the Boomer & Echo personal finance blogging team with his mother, a former financial advisor.  Reach him at robbengen@gmail.com